Move to Issued-age State with Community-rated Policy (medical, plan, supplement)

[self-made]

My sister lives in California and will be purchasing an AARP UHC community-rated policy. When she moves to Idaho, which is an issued-age only state, will her policy convert/be change to an issued-age policy?


The SHIBA representative in Idaho said the policy will remain community-rated, and the laws of California will govern/control the policy. That seems odd to me. Conversely, I have been told by UHC that, when my sister moves to Idaho, they will issue her a new Certificate of Insurance that will show Idaho as the governing state for the policy and indicate that the policy is issued-age.


Does anyone know what the correct answer is and where I might find a law related to this issue?

[SCGamecock]

To clarify, this thread is about Medicare supplements (Medigap). SHIBA (SHIP) reps are volunteers and NOT fully trained on all aspects of insurance.

There are no state laws regarding this. Companies can choose resident state pricing or issue-state pricing. UHC uses resident state pricing so it changes when the person moves. This is typical of other companies with a national footprint but United American is one exception.

Local companies typically use issue-state pricing, meaning the rate doesn't change due to moving. For example, BCBS-SC doesn't know the cost of medical care in Idaho so when a person moves from SC to ID they continue to pay the SC Medigap rate.

Also, please refer to post #7 in your prior thread below. If your sister will still be under 65 when the move occurs, the under 65 community-rated UHC CA policy will convert to the under 65 community-rated UHC ID rate following UHC resident pricing rules. There is no issue-age pricing for under 65 Medigap plans. The UHC rep may not have heard you say she is under 65.

https://www.city-data.com/forum/heal...l#post59361359

[self-made]

SCGamecock, I can't thank you enough for your input on this. You've answered in a few sentences what I've researched for hours upon hours.


Yes, my sister will be under 65 when she moves to Idaho. Is it correct to believe that when she does turn 65 and is a resident of Idaho, that her UHC policy will convert from a "under 65 community-rated" policy to an issued-age policy?


I'm focused on getting my sister an issued-age policy rather than a community-rated because, for some reason, I think the issued-age policies are more likely to keep her premiums lower as she ages. Is that true? Or, in the long-term, are community-rated and issued-age policy premiums very similar in cost?

[Ariadne22]

SCGamecock posted a while back that long-term, past age 77 or thereabouts, over time issue-age should be more cost-effective. However, last year UHC changed its pricing structure for new enrollees so that community-rated policies are even more attractive at younger ages.

That said, per Medicare.gov., it appears Idaho mandates its Medigaps be issue-age. Ergo, the only choice in Idaho is issue-age. Even UHC, which is generally the only insurer offering community rating in most states not mandating otherwise, offers only an issue-age policy.

When your sister reaches age 65, she is entitled to another guaranteed issue Medigap enrollment period. Thus, UHC should be contacting her on a conversion. She would also be free to choose another carrier at that time.

[self-made]

There you are Ariadne22. As always, thank you so much for weighing in and demystifying all things Medicare.








Based on your input, I'm comfortable with either a community-rated or issued-age policy for my sister.